07exLRs1a - ISOM111 Business Statistics (Fall 2010)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ISOM111 Business Statistics (Fall 2010) Suggested Solutions for Tutorial Set 7 Exercise (Q1 Part a) 1. (a) The dependent variable is the number of homes sold annually & the independent variable is the annual mortgage rate. (b) x =9 . 62 s X =1 . 3 4 4 8 P x 2 4 1 . 72 y =3 4 9 . 1 s Y = 25.1106 P y 2 = 1224383 P xy = 33388 . 1 n =10 SSX = P x 2 n x 2 = P x 2 ( P x ) 2 n =( n 1) s 2 X 6 . 276 SSY = P y 2 n y 2 = P y 2 ( P y ) 2 n n 1) s 2 Y =5 6 7 4 . 9 SSXY = P xy n x y = P xy P x P y n = 195 . 32 b β 1 = = 195 . 32 16 . 276 = 12 . 000 b β 0 = y b β 1 x =349 . 1 ( 12 . 000)(9 . 62) = 464 . 54 b Y =464 . 54 12 . 000 X (c) If the annual mortgage rate is 0%, the average number of homes sold is expected to be 464540 . It is not meaningful to interpret the Y intercept because the mortgage interest rate cannot be equal to 0% in practice. 464540 is the portion of number of homes sold annually that varies with factors other than the mortgage interest rate. (d) s = s SSE n 2 where = ( ) 2 =5674 . 9 ( 195 . 32) 2 16 . 276 =3330 . 964 s =20 . 4052 (e) r = = 0 . 6427 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(f) H 0 : β 1 =0 vs H a : β 1 6 With α . 1 , we reject H 0 if | t obs | >t 10 2
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/06/2011 for the course BBA ISOM111 taught by Professor Hu during the Fall '08 term at HKUST.

Page1 / 2

07exLRs1a - ISOM111 Business Statistics (Fall 2010)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online